Debt investors are betting that the Federal Reserve’s latest rate hike is a prelude to a downturn for some U.S. companies as rising borrowing costs are likely to put a damper on consumer spending and raise expenses for business.
The Federal Reserve on Wednesday announced a 0.75-percentage-point raise of the federal-funds rate, the central bank’s largest rate hike since 1994. Fed projections released Wednesday also showed that the policy makers expect to raise rates further as the year progresses.
